He pointed out that one country's success need not come at the expense of another.

"That is why the United States insists we do not seek to contain China's rise, on the contrary, we welcome China as a strong and prosperous and successful member of the community of nations, a China that draws on the rights, strengths and creativity of individual Chinese like you."

Obama said more is to be gained when great powers cooperate than when they collide, and he believed that cooperation must grow beyond governments.

"It must be rooted in our people, in the studies we share, the business that we do, the knowledge that we gain, and even in the sports that we play, and these bridges must be built by young men and women just like you and your counterparts in America," he said.

Obama also announced that the United States would expand the number of students to study in China to 100,000. "These exchanges mark a clear commitment to build ties among our people, as surely as you will help determine the destiny of the twenty-first century," he added.

"Neither the United States or China is content to rest on our achievements. For while China is an ancient nation, you are also clearly looking ahead with confidence, ambition and commitment to see that tomorrow's generation can do better than today," said the president.

Obama said China is now the world's biggest internet user, and that was why the Internet was included as part of Monday's event.